Outcome of Financing for Development Conference Needs to ‘Make a Difference on the Ground’, Speaker Says, As Second Committee Debates Macroeconomic Policy
Preparations for the Third Conference on Financing for Development had proceeded in a “positive spirit”, the representative of Ethiopia today told delegates in the Second Committee (Economic and Financial) during discussions on Financing for Development and the international financial system and development.
“A successful and ambitious outcome” for the Conference, which would take place in Addis Ababa, was possible, he said, pointing to consensus among States on the need to build on Monterrey and Doha the critical role of official development assistance (ODA) in implementing the post-2015 agenda.
“Addis needs to make a difference on the ground,” said the representative of Norway who agreed that ODA was “crucial”, particularly for least developed countries, and urged respect and re-confirmation of existing commitments.
Other flows, such as foreign direct investments and remittances, were far more important than ODA, he added, stressing the need to use resources efficiently, to encourage private sector job creation, and to curb illicit financial flows. The latter should be placed at the top of the new development agenda as a key element in the discussion on domestic resource mobilization.
For India’s representative, the Conference should go beyond a discussion of financing for development and should aim to create a “global system conducive to development itself” with the goal of enabling faster, inclusive economic growth in developing countries to allow them to generate necessary resources domestically.
The Conference should also aim to update the Monterrey Consensus and Doha Declaration, urged the representative of Brazil, so that the new development agenda and sustainable development goals could be financed. The Conference needed to provide clear guidance on means of implementation, and decide on follow-up, including providing adequate permanent structures and an accountability framework.
That view was repeated throughout the debate, with Indonesia’s delegate, speaking on behalf of the Association of South-East Asian Nations (ASEAN), also stressing the need for a strong means of implementation in financing, technology transfer, capacity-building and trade. He welcomed the proposal of the Open Working Group on the Sustainable Development Goals to include a standalone goal on means of implementation.
The representative of the United States noted the growing complexity of development financing, with the growth of private flows reflecting changes in developing countries’ markets and increased access to information about those markets. Private flows would be highest when businesses expected returns, so it was important to ensure an enabling domestic environment.
Trade was also vital to growth, she added, calling on States “not to turn inward” but to “integrate further”. That call for liberalization was echoed by St Lucia’s representative, who spoke for the Caribbean Community (CARICOM). She called for changes to an international trading system that worked to “harm the world’s poorest” and the removal of agricultural subsidies that “rob poor countries of markets for their products”.
Least developed countries were particularly badly hit by trade imbalances, said the delegate of Benin, on behalf of the Group representing those countries. He stressed the need to consider full debt cancellation and to improve the framework for encouraging foreign direct investment.
Least developed countries attracted less than 1.7 per cent of total foreign investment, he said, adding that most was focused on natural resources extraction and related industries. An “international investment support centre for least developed countries under the auspices of the United Nations” should be considered to help boost investment flows.
Zimbabwe’s representative called for amplification of the voice of the General Assembly on matters of global economic governance and reform of global economic governance structures to fix a “democratic deficit” that “severely undermines their credibility and legitimacy”. Better resources were needed and developing countries needed greater voting powers.
The reports before the Committee were introduced by Alexander Trepelkov of the Department of Economic and Social Affairs.
Also speaking today were representatives of Bolivia (on behalf of the “Group of 77” developing countries and China), Costa Rica (on behalf of the Economic Community of Latin American and Caribbean States (CELAC)), Malawi (on behalf of the African Group), Egypt (on behalf of the Arab Group), Peru, Belarus, Japan, Sudan, Venezuela, Trinidad and Tobago, Switzerland, Senegal, China, Nepal, Russian Federation, Thailand, Singapore, Mexico, Morocco, Australia, United Republic of Tanzania, Bangladesh, Algeria, Congo, New Zealand, Iran, and the Solomon Islands.
A representative of the delegation of the European Union also spoke.
The Committee will meet again on 22 October, at 10 a.m., to consider international trade and development.
Background
The Second Committee (Economic and Financial) met this morning to discuss macroeconomic policy questions (the international financial system and development) and financing for development. The Committee had before it several reports related to the two agenda items.
Introduction of Reports
ALEXANDER TREPELKOV, Director of the Financing for Development Office of the Department of Economic and Social Affairs, introduced two reports. The Secretary-General’s report on the follow-up to and implementation of the Monterrey Consensus and Doha Declaration on Financing for Development (document A/69/358) dealt with mobilizing domestic financial resources for development; mobilizing international private resources for development; international trade as an engine for development; international financial and technical cooperation for development; external debt; and systemic issues — enhancing the coherence and consistency of the international monetary, financial and trading systems in support of development.
He also introduced the report of the Secretary-General on the international financial system and development (document A/69/188), which contained information on trends in international official and private capital flows to developing countries and efforts to strengthen the international financial system towards the post-2015 development agenda. Ongoing challenges in the areas of financial regulation, sovereign debt distress, the global financial safety net, multilateral surveillance, policy coordination and governance reform of the international financial institutions were reviewed. Overall, it stressed that the international financial system would be critical to implementation of the post-2015 agenda.
Statements
PAMELA GRACE LUNA TUDELA (Bolivia), speaking on behalf of the Group of 77 and China, said the question of financing had a central role in the implementation of the internationally agreed development goals, including the sustainable development goals and the post-2015 development agenda. In that regard, it was imperative to ensure adequate and stable means of implementation to achieve those goals and to support the implementation of the post-2015 agenda. ODA remained essential as an instrument for development and to help the achievement of national development objectives, she said, adding that it was necessary for developed States to fulfil in good faith their commitments to developing and least developed countries.
The upcoming Conference on Financing for Development must also discuss the 2008-2009 economic financial crisis and its consequences, including its impact on the implementation of the internationally agreed development goals. The preparatory process of the Conference must also address financing for sustainable development through a coherent approach that integrated its three dimensions and inter-linkages. Further, it must articulate a forward-looking focus on financing the new set of sustainable development goals. The Monterrey Consensus and the Doha Declaration provided the conceptual framework for the Conference. A strong preparatory process leading to the Addis Ababa Conference was needed with participation from capitals in order to achieve an ambitious outcome document.
MENISSA RAMBALLY (Saint Lucia) spoke on behalf of CARICOM, and associated herself with the “Group of 77” developing countries and China, and the Community of Latin American and Caribbean States (CELAC). She said that challenges faced by financing for development required a global commitment to achieve internationally agreed development goals, to create conditions that would enable more foreign investment, debt relief and efficient Government, and to tear down the trade barriers that “harm the world’s poorest” and the agricultural subsidies that “rob poor countries of markets for their products”.
Building on Monterrey and Doha, she said, the third International Conference on Financing for Development must include due consideration to the strengthening of international cooperation in tax matters, financing of sustainable development goals, and the reform of global institutions. Attention must also be given to the questions of debt, including the matter of sovereign debt restructuring. The practice of using per capita gross domestic product (GDP) as a measure of national wealth and resilience presented a “persistent obstacle to any form of development assistance or relief” for CARICOM member States, and resulted in a misleading classification of many of them as middle- or high-income countries.
WILLIAM JOSÉ CALVO CALVO (Costa Rica), speaking on behalf of CELAC, said that despite noticeable progress in some developing regions, the world gross product was forecast to grow modestly, and unemployment remained dangerously high in several countries. More forceful and concerted policy actions at the national and international levels were needed to mitigate major risks and ensure stronger and sustained economic recovery. Policies pursuing long-term sustainable growth, employment and lowering income inequality were the best way to achieve poverty eradication. It was also critical to enhance transparency, supervision, regulation and good governance of the international financial system to assure international stability.
He welcomed General Assembly resolution 68/304 as the first step to improving the international architecture for sovereign debt restructuring. Concerning trade, he noted that to harness its potential, there had to be a universal, rule-based, open, non-discriminatory and equitable multilateral trading system that promoted recovery, growth, sustainable development and employment, taking into account the needs and interests of developing countries. The distortions on international trade should be addressed, in particular non-tariff measures, the persistence of tariff peaks, agricultural export subsidies and trade distorting domestic support. On financing for development, he said that an effective strategy would require the mobilization and use of new and additional financial resources, and underscored the central role of ODA in achieving development goals.
OTTO RIADI (Indonesia), speaking on behalf of ASEAN and associating himself with the Group of 77 and China, said the post-2015 agenda needed to be supported by a strong means of implementation in financing, technology transfer, capacity-building and trade. He welcomed the proposal of the Open Working Group to include a standalone goal on means of implementation, and targets on means of implementation connected to each other goal. He looked forward to the Financing for Development conference, hoping it would deliver new reaffirmation of commitments on ODA, mobilize international and domestic financing sources, and strengthen cooperation between developed and developing countries on development financing, financial policy coordination and reform of the international financial architecture.
Regional cooperation was important to global strategies for financing for development, he said. As the ASEAN economic community progressed, new and improved methods were promoting trade facilitation, capital market development, food security, intellectual property and infrastructure development. Several regional projects aimed at strengthening national capacities to formulate, implement and monitor development strategies, like the Economic and Social Commission for Asia and the Pacific (ESCAP) project to support countries in achieving the Millennium Development Goals. Peace, stability and development was at the top of the ASEAN agenda and the aim was to sustain existing momentum while encouraging connectivity for trade and investment that enhanced private sector integration and competitiveness among Member States.
CHARLES P. MSOSA (Malawi), speaking on behalf of the African Group, and associating himself with the Group of 77 and China, underlined that international development cooperation should remain at the heart of the new global development framework process. The implementation of the post-2015 agenda would depend on a global partnership for sustainable development and the eradication of poverty. The success of the Millennium Development Goals and the global development agenda beyond 2015 would depend on the accomplishment of the global commitment on financing for development.
He said that as ODA declined for Africa, urgent measures were needed to enable the continent to sustain development gains and adapt to new economic, social and environmental challenges. The African Group anticipated that the outcome of the Conference on Sustainable Development Financing would have concrete recommendations that could be put into immediate effect. The Conference could make a difference if its outcome placed poverty eradication as a core development agenda and provided the financial framework to back the transformative development agenda beyond 2015. The international community should support the efforts of many African countries to develop their capacities of collecting public revenues as to finance their development. Members States and other donors should also consider contributing to the Trust Fund for the Follow up to the international Conference on Financing for Development.
OSAMA ABDELKHALEK MAHMOUD (Egypt), speaking on behalf of the Arab Group, and associating himself with the Group of 77 and China, supported a more prosperous and just future for all countries, in line with the principle of common but differentiated responsibilities. He stressed the need for good preparations for the upcoming Conference on Financing for Development to address the issues facing the world. There must be an environment conducive to sustainable development, taking into account the needs of developing countries, particularly their access to markets. He also called for the restructuring of the international system to involve developing countries in all decision-making processes.
ANTONIO DE AGUIAR PATRIOTA (Brazil), associating himself with the Group of 77 and China, and CELAC, said the Monterrey Consensus and Doha Declaration must be updated and adjusted to enable the framework for financing sustainable development goals. The upcoming Conference on Financing for Development was expected to provide clear guidance for the means of implementation, and should decide on the follow-up mechanisms, including adequate permanent structures and an accountability framework. Many countries, including his, had prioritized people-centred policies for poverty eradication and sustainable growth. An agreement must be reached on a global economic and financial architecture that respected domestic policy choices and the central role of Governments. In view of falling levels of ODA, which “tended to be overestimated”, he called on development partners to meet their commitments and to consider an across-the-board increase in that assistance.
GEIR O. PEDERSEN (Norway) said “Addis needs to make a difference on the ground”, and that future sustainable development goals could only be achieved by tapping into all available sources and using them efficiently. Private incentives and public goals must be better aligned, and the major push for poverty reduction would come from private sector-led job creation. As ODA was crucial for many countries, particularly those least developed and fragile States, the existing commitments should be respected and re-confirmed. However, other flows, such as foreign direct investments and remittances, were far more important than ODA. In particular, there was a vast potential in curbing illicit financial flows, which should be placed at the top of the development agenda as a key element in the discussion on domestic resource mobilization.
GLAUCO SEOANE (Peru) aligned himself with the Group of 77 and China and CELCAC, saying it was a “moral imperative” to eradicate poverty worldwide. The Conference on Financing for Development would be crucial to the implementation of the post-2015 development agenda. To address the three dimensions of sustainable development, new and more comprehensive means for development were needed and he listed several directions in which international efforts should go in order to boost growth and help eradicate poverty, with a strengthened global partnership for development as a key element. If the sustainable development goals failed, he predicted infinitely greater costs for humanity to develop in harmony with nature.
TERRI ROBL (United States) said her country was working to achieve the goal of eradicating extreme poverty in the next two decades. Development financing had become increasingly complex, with the growth in private financing for development reflecting changes in developing countries’ markets and the increased availability to potential investors of information about those markets. Private flows were at their highest when businesses expected returns, so it was important to encourage that. She stressed the growing importance of South-South cooperation. Noting the approach of the Conference on Development Financing, she hoped that several resolutions that the Committee would discuss would remain procedural to ensure focus on preparations for the Conference. She underlined the importance of infrastructure investments and trade to boosting growth and called for continued liberalization. The answer was “not to turn inward” but to “integrate further”.
IGOR MISHKORUDNY (Belarus) looked forward to the Conference on Financing for Development, and stressed the need for the development agenda to include a greater role for developing States, including through the expansion of the world’s reserve currencies. He pointed in particular to special drawing rights. Working alongside the Bretton Woods institutions, Belarus had prepared laws on financial market regulation, with a World Bank partnership aimed at modernizing financial governance, taking into account best practices. The private sector was also developing, with forestry management and transport infrastructure receiving $300 million in investments. The Commonwealth of Independent States (CIS) aided growth and he called for greater cooperation between members and other participants. The markets of middle-income countries drove growth and technological innovation and he rejected all unilateral coercive economic and trade measures.
MICHIKO MIYANO (Japan) said that for successful implementation of the post-2015 agenda, all macroeconomic tools must be mobilized in an integrated manner. She outlined several priorities in preparation for the Conference on Financing for Development. Namely, the discussion should build on the Monterrey Consensus and Doha Declaration, capture the full spectrum of capital flows, including the illicit ones, and address the evolving development cooperation. As domestic public financing was fundamental for development financing, capacity-building in the areas of tax, customs, statistics and others was instrumental in ensuring sustainability. Her country had promoted people-centred investment, meaning that all public and private investments should be conducive to sustainable development and enhance people’s resilience to economic crises, disasters and climate change.
RWAYDA IZZELDIN HAMID ELHASSAN (Sudan), associating herself with the African Group, Group of 77 and China, and the Arab Group, said the world was facing a global challenge regarding financing for development in countries in special situations. ODA for developing countries had decreased in the past two years, and it was not enough to meet development challenges, especially in countries in special situations. She was concerned about developed countries’ unmet commitments, and appealed to them to allocate the necessary resources to sustainable development agendas, in accordance with national priorities and needs. Moreover, she insisted on having sufficient financing for all executive activities implemented by the United Nations system.
AMIT NARANG (India), associating himself with the Group of 77 and China, said that 2015 was the perfect opportunity “to ensure a global financial system that is pro-development”. For the post-2015 agenda to be realized, the international financial system must ensure a substantial augmentation of net financial flows to developing countries, as well as incentivize long-term investments in sustainable development by balancing the imperatives of “stability” with those of “access”. The upcoming Conference on Financing for Development must go beyond the question of development finance and aim at creating a “global system conducive to development itself”. The ultimate goal should be to enable faster inclusive economic growth in developing countries to allow them to generate the resources they needed themselves.
JEAN-FRANCIS ZINSSOU (Benin) spoke on behalf of the Group of Least Developed Countries and aligned himself with the Group of 77 and China. He said that least developed countries needed additional, preferential, concessional and most favourable treatment to improve access to markets, finance, technologies, know-how and other resources, along with differential and flexible treatment as they undertook international commitments and obligations. Domestic resources needed mobilizing but substantial limits on the growth of tax revenues hampered that. ODA remained a “critical source of external financing” but international aid plans indicated a focus on middle-income countries. Debt, especially debt-servicing, aggravated the poverty trap, with servicing crowding out much needed public expenditure in budgets. Full debt cancellation should be considered at the Conference on Financing for Development.
Least developed countries attracted less than 1.7 per cent of total foreign direct investment, he said, adding that most was focused on natural resources extraction and related industries. Infrastructure, regulatory frameworks, and human and institutional capacities were needed to boost investment flows. An “international investment support centre for least developed countries under the auspices of the United Nations” should be considered as part of the financing conference, the post-2015 agenda and the mid-term review of Istanbul Programme of Action. Remittances, South-South cooperation and aid for trade were essential elements of development but a deceleration in the expansion of trade for least developed countries had occurred. The 1.11 per cent of global exports for which they accounted was well below the 2020 target of 2 per cent and the Bali Package needed urgent implementation. The voices of least developed countries needed amplifying in international financial and economic decision-making and they should be recognized as a special category by the Bretton Woods institutions.
HENRY ALFREDO SUÁREZ MORENO (Venezuela) said no single model on development financing could be applied to all countries and that the approach had to be adapted based on the needs and specific circumstances of each State and on the basis of their chosen policies. Approaches also had to account for debt, trade, and technology transfer issues. Donor countries had to honour commitments made on ODA to ensure they provided necessary resources to promote development. The main responsibility lay with States, including responsibility for financing. The international financial architecture needed reform to ensure they contributed better to democratic decision-making and the greater participation of developing countries. Financing was vital to the fulfilment of goals set beyond 2015, and he said he had taken part in the intergovernmental panel to find mechanisms effective for implementation of the post-2015 agenda. The consensus document that emerged from discussions would be a useful input for the financing conference.
FREDERICK MUSIIWA MAKAMURE SHAVA (Zimbabwe) aligned with the Group of 77 and China and the African Group, saying ill-discipline and lack of coordination in global economic policy often led to macroeconomic imbalances that caused dire consequences for the stability of the international system. The Assembly’s voice needed amplifying on matters of global economic governance, while the global financial system needed reform. Global economic governance also needed reform to fix a “democratic deficit” that “severely undermines their credibility and legitimacy”. Better resources were needed and developing countries needed greater voting powers. Landlocked developing countries were “persistently marginalized” in trade because of their “geographical handicap” and measures were needed to improve their participation. The Doha Round should be concluded and the Bali Package implemented, particularly in light of the low share of world trade held by landlocked developing countries due to dependence on primary commodities. For the needed structural transformation, technical and financial assistance was needed. Zimbabwe had a policy aiming at developing processing capacities of commodities.
MELISSA ANN MARIE BOISSIERE (Trinidad and Tobago), associating herself with the Group of 77 and China, CELAC and CARICOM, said the imperative of assisting small States with building resilience to external shocks required that their vulnerabilities be taken into account in the design of rules and practices in the international financial system. She called for a reform of the international financial system and institutions so that they would be more inclusive, transparent and participatory. Further international assistance was needed to assist small vulnerable developing countries with building resilience to economic and financial shocks, especially with the evaluation and implementation of various instruments aimed at managing sovereign debt. In that context, her country fully supported the recent resolution on the establishment of a multilateral legal framework for sovereign debt restructuring processes.
AMAN HASSEN (Ethiopia) associated himself with the Group of 77 and China, Group of least developed countries, and the African Group. He recalled the preparatory process for the Conference on Financing for Development, believing the “positive spirit” of negotiations boded well for “a successful and ambitious outcome”. There was consensus on the need to build on Monterrey and Doha, to involve technical experts in the preparatory process, and the critical role of ODA in implementing the post-2015 agenda. The Conference would also review implementation of previous outcomes and map out a strengthened framework for future work. To mobilize significant domestic resources for development, countries needed capacity, and that required international support.
OLIVIER MARC ZEHNDER (Switzerland) reiterated the need for a single agenda to eradicate poverty and promote sustainable development, which should include a monitoring and accountability framework, and a means of implementation. If the international community was serious about financing the new agenda, an integrated and coherent framework for aid, climate finance and sustainable development was needed, as the different flows were not substitutes for one another. The path from the large number of policy recommendations presented by the Intergovernmental Committee of Experts towards a coherent framework was long. “We must strike the right balance between short-term needs and aligning incentives for long-term financing” to ensure the sustainable development agenda could become a reality, he said.
IBRAHIMA SORY SYLLA (Senegal), associating himself with Group of 77 and China, African Group, and the Group of Least Developed Countries, said the current state of the global economy was negatively impacting the performance of developing countries and the stability of their macroeconomic frameworks. While the Monterrey Consensus had laid a major groundwork for mobilizing resources, its implementation had not enabled their countries to properly address economic imbalances. He hoped the upcoming conference in Ethiopia would provide an opportunity to adopt new and more coherent financial strategies, founded on national ownership. On ODA, the international community should uphold its commitments and adopt measures to guarantee more predictability of aid flows to ensure their effectiveness. He called for the establishment of an international tax on financial transactions, except on remittances, and for a reform of the global economic and financial governance to give more flexibility to the conditions for access to credit.
YINGZHU CHEN (China), associating herself with the Group of 77 and China, said the international community must ensure more balanced macroeconomic policies, and countries must take reform and innovation as core components of their growth patterns. It was important to continue to object to trade and investment protectionism, and to create a transparent and stable investment environment. She called for a reform of the current international financial system and global economic governance to increase the representation and bargaining power of developing countries. The global financial regulation and international monetary system should also be improved. Her country’s economy had grown by 7.4 per cent in the first half of 2014, and economic restructuring continued to move ahead.
JOHN BUSUTTIL (European Union) said his engagement at the United Nations and the Committee would be guided by the objective of reaching consensus on a single, short, inspiring and relevant post-2015 development framework that was universal, comprehensive and transformative and ensured a rights-based approach encompassing human rights. The proposal agreed in the Open Working Group on Sustainable Development Goals should be the basis for integrating those goals into the post-2015 agenda. The report of the Committee of Experts on Sustainable Financing would guide the intergovernmental process which would lead to the Addis Ababa Conference. It was important to ensure that goals and targets had universal significance. If the post-2015 agenda were to be truly transformational, it was vital that all Governments played their part and were sufficiently ambitious in their levels of aspiration. Further deliberation was needed on how to ensure the necessary global transformation, while taking into account national circumstances.
He said that climate change would continue be an important topic and a central challenge for sustainable development, with the potential to undermine poverty eradication efforts. The Union stood ready to contribute to the elaboration of a new global partnership which encompassed all available means of implementation. That partnership should mobilize action at all levels by all countries and other stakeholders, based on an enabling policy framework. The Union remained committed to the Doha Development Agenda and the implementation of the Bali ministerial decision. The Financing for Development Conference in July 2015 would provide an opportunity for a global discussion on the range of means of implementation for the post-2015 agenda, thereby making a positive contribution to the September 2015 summit. Preparations for the two events should support one another and avoid a duplication of effort.
SEWA LAMSAL ADHIKARI (Nepal) associated herself with the Group of 77 and China, and the Group of Least Developed Countries. She said that resource constraints constituted one of the biggest challenges facing the least developed countries in achieving sustained, inclusive and equitable growth, and sustainable development. Structural weaknesses such as low levels of per capita income, savings and investment, and a small tax base constrained their efforts to mobilize domestic resources. As those countries had only 1.14 per cent share of world trade, the international trade and finance architecture should be supportive of and responsive to their special needs and priorities. The volume of foreign direct investment flows to the least developed countries remained low with less than 2 per cent, and mostly concentrated in extractive sectors. Accordingly, development partners should encourage their companies to diversify their investment in the productive sectors of such countries.
DILYARA S. RAVILOVA-BOROVIK (Russian Federation) said that unless shortcomings in the international financial system were appropriately addressed, the implementation of the post-2015 agenda would not be safeguarded from a stalemate. Finding successful solutions could be helped by expanding the representation of developing countries and fast growing economies in international institutions. ODA should remain the main source of financing to achieve the sustainable development goals. At the same time, alternative and innovative sources played an important role as additional mechanisms for mobilizing development resources. She called for private incentives for development to be harmonized with State goals, and expressed support for the principle of ownership and leadership of countries in implementing international development strategies.
PATTAMAWADEE AUEAREECHIT (Thailand), aligning with the Group of 77 and China and ASEAN, said that despite progress in regulatory reforms after the 2008 global economic and financial crises, stability had not be restored for progress towards the post-2015 development agenda. Thailand, which was inspired by its King’s Sufficiency Economy Philosophy, supported strengthening the role of the United Nations in enhancing engagement with regional and international financial institutions. Emphasizing the importance of regional economic integration as a path towards collective, inclusive and sustainable development, Thailand and other ASEAN countries were working to ensure a smooth transition to the ASEAN Community in 2015. Reforming the international financial architecture and enhancing equitable representation as well as increasing the voting rights of developing countries in the Bretton Woods institutions were important.
EUGENE NG (Singapore), associating himself with the Group of 77 and China, and the ASEAN, said the third Conference on Financing for Development would be “an opportune forum to reinvigorate the ODA commitments”, since such assistance continued to be a critical means of implementation for development. He underscored the importance of South-South, North-South and triangular cooperation in capacity-building and sharing of experiences. In that context, his country had shared its development expertise with over 80,000 Government officials from 17 countries through the Singapore Cooperation Programme, established in 1992
SALVADOR DE LARA RANGEL (Mexico) called for support for debt relief and access to products to help drive the financing of sustainable development. The international community had achieved major successes in the past and could do so again. The financing for development agenda was useful as it gave a broad vision of the challenges faced in mobilizing resources for development. Its broad and holistic vision would provide the basis on which to discuss crucial topics, particularly the various means through which resources would be mobilized. The holistic vision gave room for strengthening international economic governance while making national level improvements and the outcome should bring Monterrey and Doha up to date.
ZAKIA EL MIDAOUI (Morocco), aligning herself with the Group of 77 and China, African Group and the Arab Group, said the development financing conference offered a chance to assess progress and agree on resources for fulfilling the new agenda. It had to account for the challenges faced by developing countries but also by the international community. Environmental protection and peace and security had to be to the fore and financing needed to ensure partnerships that brought together all stakeholders. Traditional and innovative solutions had to be considered and developed countries had to fulfil the commitments they had made. It was vital to address the debt-servicing burden and States needed better access to markets. Trade and ODA were vital but traditional assistance would not be enough to meet all the post-2015 needs. Innovative tools would be needed to create additional resources and she noted that Morocco would host a regional conference on development that would focus on innovative financing to transform Africa.
PETER VERSEGI (Australia) said to better reflect the changing nature of our financial relationships and knowledge frameworks, the upcoming conference in Addis Ababa would need to build on the Monterrey Consensus. His country expected the conference to draw on the work of the Intergovernmental Committee of Experts. That work focused on the importance of empowering countries, and offered a framework, identified opportunities and outlined a range of policy options. Effective domestic resource mobilization was vital to long-term economic growth and development. Australia had worked with the Solomon Islands to help that country improve revenue collection and tax compliance. There were estimates that developing countries lost upwards of $1 trillion through illicit financial flows. He called on Member States to support the existing private sector inside developing countries by providing them with access to finance, and by developing local capital markets and finance institutions. Priority should be afforded to boosting global trade while reducing the barriers to it.
TUVAKO N. MANONGI (United Republic of Tanzania) associated himself with the Group of 77 and China and the African Group. He said the third International Conference on Financing for Development should review the implementation of the Monterrey Consensus and Doha Declaration; address new and emerging issues related to the mobilization and use of financial resources for sustainable development; and reinvigorate the financing for development follow-up. He called upon developed countries to fully implement their ODA commitments, and noted that since adoption of the Monterrey Consensus, developing countries had made strides in their capacity to mobilize domestic financial resources for development. He expressed support for regional and international efforts to address illicit financial flows, including in the realm of extractive industries and called upon developed countries to play a bigger role in tackling such flows. Finally, he underscored the importance of interaction among international groups that made policy recommendations or took policy decisions with global implications as well as the need for a multilateral mechanism to monitor and follow-up the fulfilment of their pledges and commitments to ensure accountability.
A. K. ABDUL MOMEN (Bangladesh), associating himself with the Group of 77 and China, and the Group of Least Developed Countries, said the international financial system should be “more transparent, inclusive, participatory, and, above all, pro-poor and pro-development”. It was important to ensure that the weak countries did not suffer from over-restricted steps by the major economies and major financial institutions globally. As international trade was an engine for development, the agreement on least developed countries, reached in the Bali World Trade Organization Ministerial Meeting in 2013, must be fulfilled. Those included the decisions on duty-free and quota-free market access for those countries, preferential rules of origin, and operationalization of the waiver concerning preferential treatment to services and service suppliers of such countries.
NASREDDINE RIMOUCHE (Algeria), associating himself with the Group of 77 and China, and the African Group, said there were shortcomings in the international financial and economic system, and the democratic deficit within international institutions only exacerbated inequalities persistent in the world economic order. The new world hierarchy must be based on equality, sovereignty and stability, he said, calling for a global reform of the economic and financial system to promote development effectively and respond in an equitable way to the needs of developing countries. International financial regulations must be improved by diminishing excessive risk-taking and capital flows, and developing countries must be included in decision-making processes. On financing for development, there had been improvements, but a lack of funding remained. Additional funds must be mobilized, taking into account new challenges such as climate change and natural disasters.
APPOLINAIRE DINGHA (Congo), aligning himself with the Group of 77 and China and the African Group, said the intergovernmental committee’s work had sought to account for national realities. The committee had also been inspired by the modalities and spirit that led to adoption of Rio+20 and Monterrey Consensus. It had also worked in step with the Open Working Group. The elimination of poverty remained the major challenge, as that Group had concluded. ODA, while not a panacea for sustainable development of developing countries, was still very important, particularly in situations where there were limited capacities to raise resources. South-South cooperation continued to grow and complement North-South cooperation and other innovative financing initiatives should also work to diversify sources of sustainable development financing. He welcomed the tax on financial transactions that Eurozone countries intended to levy and pointed to a tax on oil that the Government would impose with the aim of fighting poverty.
CAROLYN SCHWALGER (New Zealand) said that as a small open economy dependent on trade for the well-being of its people, her country had a strong interest in the continued prosperity of the global economy. Distorting subsidies and trade protectionism limited the progress that could drive greater growth, create more jobs and lift people out of poverty, and the Doha Round was the best path to address them. On financing for development, an evolving landscape had created a variety of new funding sources that could have a catalytic effect on global development outcomes. With the needs of small island developing States a priority for her country, she urged the international community to focus on improving the well-being of citizens in smaller, vulnerable, resource- and capacity-constrained countries.
ALI HAJILARI (Iran), associating himself with the Group of 77 and China, said “globalization” was “not translated in the real international financial structure”. At a crucial moment in development history, the international community faced a very important responsibility. Development goals would be achievable only if they had well defined means of implementation, if a sound economic and financial system was in place; and if responsible economic and financial behaviours of the countries with the lion’s share of the international economy were guaranteed. The Conference on financing should review gaps and progress made in implementing the Monterrey Consensus and the Doha Declaration. It should also establish a financing for development follow-up mechanism. Reform of the global financial institutions had to be given a real voice to increase participation of developing countries, better regulate financial flows, improve exchange rate management and promote policy coordination.
HELEN BECK (Solomon Islands) said the post-2015 agenda and its financing must be inclusive and universal. A reform of the financial and economic system was critical for maintaining stability and for the implementation of the agenda. A one-size-fits-all approach could not be applied; instead, special and unique circumstances of countries and regions should be recognized, and financing aligned with their national strategies. Means of implementation were the cornerstone of sustainable development efforts for many States, and least developed countries and small island developing States must be recognized and represented in the allocation of funds. With distribution of aid for trade crucial for some countries, she was concerned about the lack of will to complete the Doha Round.
SERGIO SHCHERBAKOV (Ecuador), associating himself with the Group of 77 and China, and CELAC, said that it was essential to define funding sources for development and to establish an effective means of implementation. The main challenge of the post-2015 agenda would be the efficiency of its implementation means. Like other middle-income countries, Ecuador had imbalances and inequalities, which should be considered in the development agenda beyond the GDP measure.